Four Crypto Groups, including the Chamber of Digital Commerce and Blockchain association, Legally Support Grayscale in Its Spot Bitcoin ETF Lawsuit Against the SEC.
Grayscale gets support from three groups in its spot Bitcoin ETF legal battle against the SEC.
Three digital currency-related groups have filed an amicus curiae brief in support of Grayscale Investment’s lawsuit against the SEC for refusing to approve its Spot Bitcoin exchange-traded fund (ETF) application.
Bloomberg Law reported that the amicus brief was filed by the Blockchain Association, Chamber of Digital Commerce, Chamber of Progress, and Coin Center. The brief, filed in Washington Federal Appeals Court, noted a growing demand for Bitcoin spot ETF in the United States. However, the groups argue that all efforts to grant investors exposure to the top asset class via a spot Bitcoin ETF have been denied by the Securities and Exchange Commission.
SEC’s Double Standard?
The associations accused the SEC of applying a double standard when considering applications to offer spot Bitcoin ETFs. According to the trade groups, the SEC had approved multiple riskier products that hold Bitcoin derivatives in the past, especially future-based BTC exchange-traded products.
“The agency has even shown this commitment to similar crypto innovations through their approval of multiple future-based bitcoin ETPs. Yet, this spot Bitcoin ETP would be demonstrably safer, more stable, and easier to understand than products currently available to investors,” the groups added.
In brief, the groups are confused as to why the SEC has refused to approve spot Bitcoin ETFs even though these funds meet all regulatory requirements to earn a listing on a securities exchange.
“The SEC should immediately reconsider this action and approve Grayscale’s spot Bitcoin ETP for public use,” the association added.
SEC Rejects Spot Bitcoin ETFs Applications
Meanwhile, the SEC’s refusal to approve a spot Bitcoin ETF has been a major topic of discussion in the industry. Several crypto stakeholders have pondered why the SEC has refused to approve a spot Bitcoin ETF, which would give institutional investors indirect exposure to the world’s largest cryptocurrency.
Grayscale has been pushing to have a spot Bitcoin ETF approved by the United States SEC. However, all efforts to get this done did not yield positive results. The investment company got fed up in June after the SEC rejected its application to convert its Grayscale Bitcoin Trust (GBTC) into a spot BTC ETF. Based on this, Grayscale sued the SEC, calling the regulator’s rejection “discriminatory.”
Some stakeholders have lashed out at the SEC for rejecting all spot Bitcoin ETFs applications. Messari founder Ryan Selkis described the SEC’s decision as a fraud committed against U.S. investors, who have lost billions of dollars following the regulators’ refusal to approve the spot Bitcoin ETF.
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